SB-1103, As Passed Senate, September 9, 2004                                

SUBSTITUTE FOR

SENATE BILL NO. 1103

                                                                             A bill to amend 1933 PA 167, entitled                                             

"General sales tax act,"                                                    

by amending section 25 (MCL 205.75), as amended by 2003 PA 139.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 25.  (1) All money received and collected under this                   

2   act shall be deposited by the department in the state treasury to           

3   the credit of the general fund, except as otherwise provided in             

4   this section.                                                               

5       (2) Fifteen percent of the collections of the tax imposed at                

6   a rate of 4% shall be distributed to cities, villages, and                  

7   townships pursuant to the Glenn Steil state revenue sharing act             

8   of 1971, 1971 PA 140, MCL 141.901 to 141.921.                               

9       (3) Sixty percent of the collections of the tax imposed at a                

10  rate of 4% shall be deposited in the state school aid fund                  

11  established in section 11 of article IX of the state constitution           

1   of 1963 and distributed as provided by law.  In addition, all of            

2   the collections of the tax imposed at the additional rate of 2%             

3   approved by the electors March 15, 1994 shall be deposited in the           

4   state school aid fund.                                                      

5       (4) For the fiscal year ending September 30, 1988 and each                  

6   fiscal year ending after September 30, 1988, of the 25% of the              

7   collections of the general sales tax imposed at a rate of 4%                

8   directly or indirectly on fuels sold to propel motor vehicles               

9   upon highways, on the sale of motor vehicles and on the sale of             

10  the parts and accessories of motor vehicles by new and used car             

11  businesses, used car businesses, accessory dealer businesses, and           

12  gasoline station businesses as classified by the department of              

13  treasury remaining after the allocations and distributions are              

14  made pursuant to subsections (2) and (3), the following amounts             

15  shall be deposited each year into the respective funds:                     

16      (a) Through the fiscal year ending September 30, 2003 and for               

17  the fiscal year ending September 30, 2006 and each fiscal year              

18  ending after September 30, 2006, not less than 27.9% to the                 

19  comprehensive transportation fund.  For the fiscal year ending              

20  September 30, 2004 and, except as otherwise provided in this                

21  subdivision, for the fiscal year ending September 30, 2005, not             

22  less than 24%  shall be deposited each year in to the                      

23  comprehensive transportation fund.  For the fiscal year ending              

24  September 30, 2005 only, the amount deposited to the                        

25  comprehensive transportation fund under this subdivision shall be           

26  reduced by $10,000,000.00.

27      (b) The balance to the state general fund.                                  

1       (5) After the allocations and distributions are made pursuant               

2   to subsections (2) and (3), an amount equal to the collections of           

3   the tax imposed at a rate of 4% under this act from the sale at             

4   retail of computer software as defined in section 1 shall be                

5   deposited in the Michigan health initiative fund created in                 

6   section 5911 of the public health code, 1978 PA 368, MCL                    

7   333.5911, and shall be considered in addition to, and is not                

8   intended as a replacement for any other money appropriated to the           

9   department of public health.  The funds deposited in the Michigan

10  health initiative fund on an annual basis shall not be less than            

11  $9,000,000.00 or more than $12,000,000.00.                                  

12      (6) The balance in the state general fund shall be disbursed                

13  only on an appropriation or appropriations by the legislature.